Carbon Offsets

Agriculture is poised to become a major supplier of carbon offset credits in the "Cap and Trade" type legislation proposed by Canadian and U.S. governments.  Current farming practices producers can generate credits from include zero-till, switching to spring manure applications and managing applications of Nitrogen through variable rate application.

Farmers Edge is partnered with Preferred Carbon Group to offer carbon aggregation services to our clients.  Preferred Carbon Group (PCG) is an innovative firm that aggregates and develops greenhouse gas (GHG) offset projects in agriculture and renewable energy in Canada.  PCG brings significant market and development experience in the carbon markets to both its clients and its investments.

The process of creating carbon credits includes verification of the claims by a third party and usually requires that the producer share large amounts of sensitive data. Farmers Edge and Preferred Carbon provide a level of security in the fact that we are independent and will use your information solely for the purpose of creating carbon credits.

Unique Contracting Opportunities

The partnership of Farmer's Edge and Preferred Carbon combines the strengths of both organizations to bring value to your farm by offering a number of unique benefits including:

• The accuracy and independent confirmation of the data required for a credit, which adds significant value. The right combination of technical resources and experience is critical to extract maximum value from carbon credits.

• Pricing flexibility. Experience has shown that the first sellers in the market receive the lowest price. Numerous pricing options will be made available to you to help you strategically market your carbon credits.

• Regular market updates and education. Carbon credits can be considered a new commodity and having a clear, concise, and experienced source of market information can add significant value to your decisions.

• Proactive data collection. Until now most agriculture Carbon Credits have come from Tillage based offsets. Proposed new legislation changes that to include new offset types based on practices such as fertilizer application and manure management.

Offset Q&A

What is a carbon offset?

"Carbon Offset Credits" are created when an operation adopts practices known to reduce GHGs. Accepted practices are identified in offset protocols approved by the government. The adoption of these practices must be voluntary and are only valid if adopted after a specified date. The government protocols also specify the amounts of carbon that can be claimed.

What is a "Cap and Trade" System?

In a "Cap and Trade" system, total emissions in the economy are capped and the largest emitters are typically regulated to reduce their Green House Gas (GHG) emissions over time. These Large Final Emitters (LFE's) are required to hold permits to emit GHGs and are penalized for producing GHGs in excess of the permits held. Therefore, LFEs can reduce their own GHG emissions, buy permits from other LFEs, or buy carbon offset credits. Credits are typically included in cap-and-trade systems to allow the LFEs flexibility in achieving reductions and to encourage other industries to transition to more environmentally friendly practices.

What is the role of a Carbon Aggregator?

Given the extensive process to create a carbon offset credit, it is simply not practical or economic for small amounts. Project size usually needs to be at least 50,000 tonnes of carbon dioxide equivalent (C02e) to be viable. Therefore, farmers seeking to access this market typically contract their potential carbon offset credits in the form of data and records with firms specialized in this area. These firms then "aggregate" the information from many farms together to create a financially viable project, hence the name "Carbon Aggregator."

How do I generate offset credits in my operation?

Carbon offset credits are created from data that represents and confirms a management practice, activity, or technology defined in a Government recognized protocol as reducing green house gases.

A series of calculations based on scientific research determine the amount of offsets that can be claimed in a particular year. The data, calculations, and supporting documentation are then subjected to an independent verification, similar to an audit.